An Overview of the Issues and the Book

The introduction provides an overview of the book and summarizes its objectives. The book is divided into four parts. The first part provides an overview of the empirics of shock spillovers through trade and financial channels in general. The second part examines the mechanism driving financial spillovers, both price-oriented and quantity-oriented. The third part presents case studies of the implications of spillovers on real economies. The final part outlines implications for monetary policy and macroprudential policy. The objective of this book is to explain how macroeconomic shocks stemming from the global financial crisis and recent unconventional monetary policies in developed economies have affected macroeconomic and financial stability in emerging markets, with a particular focus on Asia. In particular, the book studies the spillover effects of macroeconomic shocks on financial markets and flows in emerging economies and the impact of recent macroeconomic shocks on real economies in emerging markets.